Global credit ratings agency S&P upgraded Kenya’s long-term sovereign credit rating to ‘B’ from ‘B-‘ on Friday, citing reduced near-term external liquidity risks.

Robust export earnings and diaspora remittances have bolstered Kenya’s foreign exchange reserves, helping ease pressures related to high external imbalances, the rating agency said in a statement.

S&P expects Kenya’s solid economic growth and improved liquidity outlook to offset pressures stemming from high interest costs and a slow fiscal consolidation process.

President William Ruto said on Wednesday Kenya’s economic growth this year is expected to exceed official forecasts despite higher US tariffs and other challenges.

The economy is expected to grow by 5.6 per cent this year, he added, which is above the Kenyan finance ministry’s forecast of 5.3 per cent and the central bank’s projection of 5.2 per cent.

Kenya recorded an economic growth of 4.7 per cent a year ago.

The agency maintained the country’s outlook at ‘stable’.

• A Reuters report